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Share voting on the rise as investors respond to pressure
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07 September 2009
The average turnout reached 51% in the year to July according to leading UK shareholder lobby group Manifest. Two years ago only 40% of votes were cast at meetings.
In the UK, turnout reached 68%, which is the highest since Manifest's records began in 1996. Sarah Wilson, chief executive of Manifest, said the financial crisis had inspired more institutions to use their votes but added that there was a growing long-term trend of improving turnout. But she also warned: "There is a risk that if governments force or strongly encourage voting, investors simply vote blindly — either automatically in favour of management or in line with the recommendations of a particular proxy adviser."
In the UK, the Government has avoided making voting compulsory but Treasury minister Lord Myners wants to see greater engagement between institutional investors and companies they have invested in.
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